The diagram depicts a consumption function of an economy, Consumption = C + CY where C is the aggregate consumption spending, Y is the current income of the economy, and co is the fixed (or autonomous) consumption such that co > 0. Assume that Aggregate consumption spending, C 0.6 Slope of the consumption function - 0.6 - marginal propensity to consume - C 1 households that are not credit-constrained would completely smooth their consumption. Which of the following statements is Autonomous correct? consumption, Co Current income (output), Y During a credit crunch when the banks become less willing to lend, the aggregate consumption line would become flatter. If the current income falls to zero, there will be zero consumption. If all households were credit-constrained, and all income changes were perceived to be temporary, then the aggregate consumption line would be horizontal. If a higher proportion of households have "weakness of will", then the aggregate consumption line would be steeper